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Intel commits €829 million (approximately $1.0 billion) to ASML's
research and development programs to help accelerate deployment of new
technologies for 450-millimeter (mm) wafers and extreme ultra-violet
(EUV) lithography by as much as two years

Intel to also initially purchase 10 percent of pre-transaction issued
shares of ASML for €1.7 billion (approximately $2.1 billion) and
commit to purchase an additional 5 percent of post-transaction issued
shares as part of ASML's program to enable minority investments of up
to a 25 percent equity stake to its largest customers

Continued research and development in the field of lithography is
critical to the long-term growth of the semiconductor industry

SANTA CLARA, Calif.--(BUSINESS WIRE)--
Intel Corporation today announced it has entered into a series of
agreements with ASML Holding N.V. intended to accelerate the development
of 450-millimeter (mm) wafer technology and extreme ultra-violet (EUV)
lithography totaling €3.3 billion (approximately $4.1 billion). The
objective is to shorten the schedule for deploying the lithography
equipment supporting these technologies by as much as two years,
resulting in significant cost savings and other productivity
improvements for semiconductor manufacturers.

To achieve this, Intel is participating in a multi-party development
program that includes a cash contribution by Intel to fund relevant ASML
research and development (R&D) efforts as well as equity investments in
ASML. The first phase of this program consists of Intel committing to
R&D funding of €553 million (approximately $680 million) to assist ASML
in accelerating the development and delivery of 450-mm manufacturing
tools, as well as an equity investment of €1.7 billion (approximately
$2.1 billion) for approximately 10 percent of ASML's pre-transaction
issued shares. Intel will record the R&D investment as a combination of
R&D expense and pre-payments on future tool deliveries.

The second phase of the program is conditioned upon ASML shareholder
approval. It includes an additional commitment by Intel of R&D funding
of €276 million (approximately $340 million) in ASML focused on
accelerating EUV, as well as an equity investment of €838 million
(approximately $1.0 billion) for an additional 5 percent of ASML
post-transaction issued shares.

Intel will then hold a total of 15 percent of ASML's issued shares. The
total equity investment will be €2.5 billion (approximately $3.1
billion). As part of these agreements, Intel is also committing to
advanced purchase orders for 450-mm and EUV development and production
tools from ASML.

Both phases of the program are subject to standard closing conditions,
including customary regulatory approvals. The companies expect both
phases of the transaction to close after the shareholder vote in the
third quarter.

Summary of Agreements

Phase 1

450-mm Lithography

Phase 2

EUV Lithography

Total

R&D Investment in ASML

€553 million (~$680 million) over 5 years

Incremental €276 million (~$340 million) over 5 years

€829 million (~$1.0 billion) over 5 years

Equity

Investment in ASML

€1.7 billion (~$2.1 billion),

10 percent of pre-transaction shares

Incremental €838 million (~$1.0 billion),

5 percent of post-transaction shares

€2.5 billion (~$3.1 billion)

15 percent of post-transaction shares

Total

€2.2 billion (~$2.7 billion)

€1.1 billion (~$1.4 billion)

€3.3 billion (~$4.1 billion)

Status

Pending regulatory approval

Pending regulatory and ASML shareholder approvals

"Productivity improvements driven by enhanced wafer manufacturing
technologies, especially larger silicon wafers and enhanced lithography
technologies with EUV are direct enablers of Moore's Law, which delivers
significant economic benefits to consumers," said Brian Krzanich, Intel
senior vice president and chief operating officer. "The transition from
one wafer size to the next has historically delivered a 30 to 40 percent
reduction in die cost and we expect the shift from today's standard
300-mm wafers to larger 450-mm wafers to offer similar benefits. The
faster we do this, the sooner we can gain the benefit of productivity
improvements, which creates tremendous value for customers and
shareholders."

ASML has stated its intention to sell up to a 25 percent aggregate stake
in the company (on a post-transaction basis) to Intel and other
semiconductor manufacturers in this program. ASML is currently in
discussions with other customers and has publicly indicated it expects
others in the industry to participate in the R&D and equity program.
Regardless of the outcome of ASML's discussions with other customers and
upon completion of this two-phase program, Intel's ownership stake in
ASML will not exceed 15 percent of ASML's post-transaction issued shares
and will be subject to lock-up and voting restrictions.

Intel intends to fund its R&D and equity investments in ASML from cash
on hand at its offshore subsidiaries.

"We are extremely encouraged that Intel has made these investments,
which will benefit every semiconductor manufacturer in the industry,"
said Eric Meurice, president and chief executive officer of ASML. "We
hope to be able to announce additional investments by our other
customers in the coming weeks."

A critically important aspect of this transaction is the additional
funding it provides for ASML's industry-leading EUV development program.
When deployed in conjunction with 450-mm wafer production, the
productivity and cost benefits of EUV will be substantial for Intel and
other semiconductor manufacturers. Intel was involved in the formation
of the first EUV consortium in 1997. With these additional R&D
investments for EUV, ASML and Intel hope to help lead the semiconductor
industry in the transition to this critical technology.

Risk Factors

This press release contains forward-looking statements regarding the
proposed transactions between Intel and ASML, including but not limited
to statements regarding future Intel equity investments in ASML; future
Intel R&D investments in ASML and in the development of 450-mm wafer
technology and EUV lithography and production tools; the timing and
benefits of developments in 450-mm wafer technology and EUV lithography;
Intel's intentions regarding purchase orders for 450-mm and EUV
development and production tools; and ASML's intentions regarding R&D
and equity investments by third parties. Actual events or results may
differ materially from those contained in these forward-looking
statements. Among the important factors that could cause future events
or results to vary from those addressed in the forward-looking
statements are risks and uncertainties arising from, among other things,
the possibility that one or more closings of the transactions may be
delayed or may not occur; difficulties or delays in research and
development of 450-mm and EUV technologies; the ability of Intel and
ASML to retain key employees and customer and supplier relationships;
demand for and market acceptance of products produced using such
technologies or competing technologies; developments in competing
technologies; pricing pressures and actions taken by competitors; the
timing and execution of the manufacturing ramp, and manufacturing
yields, at Intel's production facilities; and litigation or regulatory
matters involving intellectual property, antitrust and other issues that
could affect the closings of the transactions, the future operation of
Intel or ASML and/or Intel's or other entities' dealings with ASML.

In addition, please refer to the documents that Intel files with the SEC
on Forms 10-K, 10-Q and 8-K. The filings by Intel identify and address
other important factors that could cause events and results to differ
materially from those contained in the forward-looking statements set
forth in this press release. Intel is under no duty to update any of the
forward-looking statements after the date of this press release to
conform to actual results.

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